One of the most important aspect of any person’s financial profile is their credit score. This is the first thing all creditors look at when making a credit decision for an applicant. Someone’s credit score will help determine whether they will get a loan or not, and more importantly, what that loan will cost. The lower the credit score, chances are it will come with a higher interest rate. Conversely, a higher credit score is going to get someone a better and more competitive rate.
This is true when buying a home as well. Not only will a higher credit score give someone a better interest rate, but if they are putting down less than 20% for a down payment, it will also affect how much they will pay in PMI. PMI stands for Private Mortgage Insurance. If a homebuyer wants to buy a house with less than 20% down…
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